Like most altcoins, Litecoin (LTC) took a brutal hit two weeks ago as Bitcoin (BTC) broke down from months of consolidation around $10,000. Falling against Bitcoin caused double damage on the USD pairings, but buyers stepped in to stop the blood. Now, after a small consolidation, the first green shoots of a recovery are sprouting.
Starting on the daily LTC/BTC chart, the first thing to notice is that the Bitcoin dump ruined what was a promising Litecoin uptrend in the making. However, things have recovered a bit, with a sort of double bottom forming. LTC is looking to both close above the 21 exponential moving average (EMA), and to soon retest the 55 EMA.
The histogram has quickly recovered, and is arcing up into positive territory. If and when Litecoin tests the 55 EMA, we should be on the lookout for how price reacts. Retaking this EMA would be an important milestone.
On the 3-day USD chart, we see that Litecoin hit the brick wall at $50 even. It is pretty important for the leading altcoin to hold here, because it has spent the vast majority of the last two years above this price; only at the bottom of the brutal 2018 bear market did it lose $50.
And indeed, a lot of volume surged in to buy this dip. The histogram recovered quickly and is again heading for the positive side of the range. The hope here is that what was a promising attempt at recovery, before the Bitcoin dump, will now continue.
In the shorter term, LTC is definitely uptrending and may have a bit more to go before we can expect some selling. On the 4-hour LTC/BTC chart, we see a breakout after a consolidation during the last week. The breakout itself has been followed by very low trade volume, though.
But the indicators here look good. The histogram has very clearly broken trend to the upside, and the RSI is up but not yet overbought. This lack of exuberance is perhaps not surprising, given the violence of the dump that followed Bitcoin’s dump.
The views and opinions expressed here do not reflect those of CryptoGlobe.com and do not constitute financial advice. Always do your own research.
Featured Image Credit: Photo via Pixabay.com
